Class Action Filed Over Coupang ‘Personal Data Breach’... Legal Community Calls to Level the Playing Field [Invest&Law]

Attorney Kwak Junho: "Initial Plaintiffs Filed Suit as a Vanguard... Additional Rounds of Lawsuits Possible"
Legal Community: "Prompt Legislation Needed for Class Action System... Full Expansion Required"

Amid a massive data breach at Coupang involving the personal information of 33.7 million customers, victims have begun taking formal legal action, signaling the onset of large-scale class action lawsuits.

According to the legal community on December 3, fourteen Coupang users filed a damages lawsuit against Coupang at the Seoul Central District Court, seeking 200,000 won in compensation per person. In their complaint, the plaintiffs argued that the exposure of sensitive information-including names, phone numbers, emails, order details, and delivery addresses-has led to privacy violations and heightened the risk of secondary damages such as voice phishing.

Additionally, the law firm Jihyang has recruited participants for a class action seeking damages and has completed 2,500 power of attorney agreements. The previous day, the firm also filed for dispute mediation with the Personal Information Dispute Mediation Committee on behalf of more than 30 Coupang users. Beonhwa Law Office stated that, as of the previous day, about 3,000 users had signed power of attorney agreements. Around 2,400 users have also expressed their intention to join the class action represented by the law firm Lopid.

Kwak Junho, an attorney at Law Firm Cheong and legal representative for the plaintiffs, stated, "Class action lawsuits are at a disadvantage for plaintiffs due to the information imbalance," adding, "That is why the initial group of 14 is filing the lawsuit to explore the situation."

He further explained, "Various information will be obtained during the trial process, and government investigations are expected to take place. Even based on what is currently known, it is clear that Coupang managed information so poorly that it would be unthinkable for an ordinary company. As the lawsuit progresses, additional victims who wish to join will submit their complaints in subsequent rounds."

The key issue is that in class action lawsuits, where companies hold all the information-creating a 'tilted playing field'-it is not easy for consumers to prove damages. Ultimately, the plaintiffs must demonstrate during the lawsuit that they suffered direct harm as a result of Coupang’s data breach.

For this reason, there are growing calls within the legal community for the prompt enactment of a comprehensive class action system. The Korean Bar Association stated, "The current class action system is limited to the securities sector, so even in cases of large-scale consumer harm, victims must respond individually," emphasizing, "A full-scale expansion of the class action system is necessary for collective rights protection."

Given that large-scale personal data breaches are recurring every year and that companies hold the key evidence for such incidents, there are virtually no legal means for victims to access this information. Therefore, the imbalance in access to information must be addressed.

It is expected that additional lawsuits will follow this initial case. Online platforms such as Naver Cafes and KakaoTalk open chat rooms are actively recruiting victims. These groups have stated that they are preparing a joint response with major law firms.

Previously, Coupang announced on November 18 that information from 4,500 accounts had been exposed, but it was later confirmed that unauthorized exposure had occurred for approximately 33.7 million accounts, including names, emails, delivery addresses, and order information.